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Threadneedle UK Equity Income Z GBP

Bestinvest LogoTargets both capital growth and income from FTSE 100 and FTSE 250 stocks.

PRICE (INC)

143.14p

PRICE (ACC)

207.65p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.75%

ONGOING CHARGE

0.82%

YIELD

3.1%

1 YEAR
4.37%

Prices as at 01 Jul 2022.

Fund commentary last updated 11 Oct 2021.

Past performance is not an indication of future performance.

Capital at risk.

The fund aims to maximise capital growth and achieve a 10% income premium to the FTSE All Share Index over a three to five year period. Manager Richard Colwell’s investment approach is a combination of bottom-up fundamentals and top-down economic analysis. He looks to invest in “hidden gem” UK equities with a focus on FTSE 100 and FTSE 250 firms. He targets overlooked companies whose ability to grow a sustainable dividend is not reflected in their valuation and which also boast solid management and strong cash flow. The fund holds between 45 and 60 stocks, with the top 10 typically accounting for 45% of total assets. The portfolio includes Covid vaccine maker AstraZeneca and rat-catching group Rentokil Initial.

Fund summary

SectorUK Equity Income
StructureOEIC
LaunchedOctober 2012
Size£3,854m
Yield3.1%
Charging BasisCapital
Dividends paid7 Feb, 7 May, 7 Aug, 7 Nov

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.75%
Ongoing Charges Figure0.82%

Investment Process

The fund’s investment universe is over 1,200 stocks across the FTSE All-Share Index and smaller companies on AIM. The stocks are analysed against several qualitative and quantitative criteria. This includes strong company management, a robust business model for generating profit and a strong balance sheet and cash flow generation. Other factors include an attractive valuation compared to the company’s peers and history and a high and stable or growing dividend. Colwell also looks for companies with the potential to improve in any of these areas. The fund does not use any yield screens or have a yield hurdle for a stock to be considered. The team uses a portfolio manager-analyst model whereby all members have analyst coverage over at least one sector. As part of the selection process Colwell and his team carry out over 800 company meetings a year. Topics covered at these meetings typically range from a management team’s track record, to its strategy, capital allocation over time, and Environmental, Social and Governance issues.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning